Saturday, 17 November 2012

Trading Standards Update - Cold Calling – Don’t Buy It!


12/11/12: Cold Calling – Don’t Buy It!

In National Consumer Week 2012, Warwickshire County Council’s Trading Standards Service is urging people to stay safe in their own homes by saying a firm “NO” to cold calling doorstep traders.

Today (12 November) marks the beginning of the Trading Standards Institute’s (TSI) annual National Consumer Week

BBC presenter Gloria Hunniford and consumer minister Jo Swinson MP are launching the national campaign with the message ‘cold calling – don’t buy it!’


12/11/12 Warwickshire mobile phone fraudsters jailed

Four men who ran a mobile phone insurance fraud from premises in Warwickshire (Rugby) and Solihull have been imprisoned, Warwickshire County Council’s Trading Standards Service are pleased to announce.

The sentencing followed a lengthy investigation by the Central England Trading Standards Scambuster Team in relation to the sale of fraudulent mobile phone insurance policies being sold by Midland Communication Solutions Ltd trading under the name Mitele.

The prosecution was supported by Warwickshire County Council’s Trading Standards Service, a Central England Trading Standards Authority.

In fact the prosecution proved that the 'mobile phone insurance policies' were, in effect, worthless pieces of paper which gave the consumers who purchased them no cover at all. The documents that were sent out contained the name 'Equity Red Star', which is the name of a genuine insurance company but whose name was being abused by the defendants and their company as they had no connection with, or authority to use, the Equity Red Star name.

The court heard how the company set up two call centres in 2008, one in Rugby and one in Tipton, as well as claiming to have a head office in Birmingham city centre. In fact, the 'head office' was no more than a serviced office instructed to forward post to the Rugby office. From their Rugby and Tipton offices sales staff were provided with lists of consumers to cold call on the phone and to sell the policies to. Sales staff were paid bonuses for every policy sold.

Complaints first started to come through because consumers noticed that the full amounts were being deducted from their accounts instead of the monthly payments as had been agreed. Other consumers complained after having multiple payments deducted from their accounts, and some consumers even reported having payments taken even though they had not taken out a policy with, or even any knowledge of, Midland Communication Solutions Ltd or its trading name, Mitele.
 
Please feel free to cascade this information to whomever you feel appropriate (including using the information in your newsletters/websites etc.). If you have any information you wish to provide to Warwickshire Trading Standards Service, either for our information, or to appear in future email alerts, please email me.
 For more information on scams, visit: www.warwickshire.gov.uk/scams

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Simon Cripwell
Trading Standards Officer
Warwickshire Trading Standards Service
Communities
Warwickshire County Council
Old Budbrooke Road Warwick CV35 7DP
tel. 01926 414039
mob. 07771 975570
My normal working days are Monday to Thursday

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